Summer Payment Trends

 

 

 

 

Summer Payment Trends

The month of June represents the beginning of summer for most Americans. While the official arrival of summer doesn’t occur until June 20th, the arrival of the Memorial Day weekend today signifies summer for both merchants and consumers. Labor Day weekend is generally regarded as the end of summer.

What does this mean for merchants? Both three-day weekends that anchor the months of summer represent a spike in transactions related to travel. Generally, we see increases in spending at gas stations, restaurants, auto rental companies, airlines, hotels and anyone else who provides service to vacationers. The trend for Summer 2021 is expected to be different than previous years as America begins to return to some normalcy after being cooped up for over a year.

As a result of reduced expenses over the past sixteen months such as fuel for driving to and from work and eating out for lunch everyday people have more disposable cash. Combine the reduced expenses with increased income through government stimulus checks and Memorial Day weekend will be filled with appliance, apparel and travel related credit card transactions.

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Make Online Shopping Experiences Better

 

 

 

Make Online Shopping Experiences Better

With the current pandemic forcing holiday shoppers to do more of their shopping online, it has become much more important to provide a pleasant online shopping experience. When a customer leaves a shopping cart behind full of goods they intended to purchase, you know that something went wrong. They bailed before completing the transaction. This is known as shopping cart abandonment.

Shopping cart abandonment has been researched in many studies. There are many reasons why this happens and the majority of the time that a customer abandons their shopping cart is because of the checkout process.

Keep Checkout Simple

Shoppers want simplicity. They already have their credit card in hand as they begin the checkout process. From completed studies, we know that the most common reasons for abandonment are unexpected fees, higher than expected shipping costs, requests for unnecessary information that a customer cannot opt-out of such as a birthdate on purchases that have no age requirement. The biggest cause of cart abandonment is a long checkout process that includes more than one page.

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Cash Discounting Programs - Credit Card Processing for FREE

 

 

 

Cash Discounting Program

What’s It All About?

You have likely heard about Cash Discount Programs that help you reduce or even eliminate the cost of processing credit cards. One thing to keep in mind is that most customers who use credit cards have no idea that the merchants they are doing business with are charged fees for accepting a credit card as a form of payment. In fact, most consumers falsely believe that the card brands (Visa, MasterCard etc.) make money from the interest the consumer pays. They are completely unaware that the credit card brands are making money from both the consumer and the merchant during each transaction. Implementing a Cash Discount Program will require some customer education, some store signage and some adjustments on the part of your employees and your pricing models.

Let’s break it down into a concept that is easy to understand. A cash discount occurs when you decrease the price of your product or service for customers who are paying with cash. Unlike a credit card surcharge or convenience fee for using a credit card, customers paying by cash receive a lower price calculated by cash discount technology at the Point-of-Sale. The selling price will be based upon the type of payment presented.

What is a Cash Discount Program?

Cash discounting allows merchants to accept credit cards without the typical 3-4% loss of profit being spent on processing fees. Cash discount processing is becoming a popular option for reducing or even eliminating the expense of accepting credit cards by shifting the cost to the consumer. While it is spreading in popularity, you have likely been aware of it for decades. You are reminded every time you pump gas into your vehicle. Gas stations have used cash discounting on the price of gas forever. If you pay with cash, it costs a little less per gallon. If you pay with a credit card, the cost you pay is the price per gallon displayed on the pump and the signage displayed in the parking lot. Our guess is, you are still using your credit card at the pump and your customers will continue to do the same if you implement a Cash Discount Program.

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What Is A Convenience Fee?

 

 

 

Everything You Need to Know About Convenience Fees & Surcharges

Every expense of your business operations reduces your overall profitability. With the economic downturn caused by the COVID-19 pandemic you are likely looking for areas that you can save money or offset expenses by passing them on to your customers.

You know, there is an expense in accepting credit cards. The pandemic has caused an increase in the use of credit cards through increased online sales. As we move forward towards a cashless society, merchants are forced to accept more credit card transactions and that increases your operating costs. Implementing a convenience fee or surcharge can help you harness this cost of operations. We will explain the differences below as well as the important information you need to know.

What Is A Convenience Fee?

A convenience fee is a fixed amount added to the purchase price. The customer pays this fee in exchange for being able to use a payment method that is convenient to them. An important thing to remember when adding this fee is that your customer must have the option of paying by cash or check to avoid this fee. An example of a convenience fee you may have experienced is when you purchase movie or concert tickets online and pay a convenience fee. You are not forced to purchase tickets online. You choose to purchase online as opposed to paying cash at the box office when you arrive. As another example, some landlords may allow tenants to pay rent using an online portal. The tenant could go to the rental office and drop off a check, but since it is more convenient to pay online, a convenience fee can be tacked on for the convenience offered. There are very specific rules that vary by card issuer on how a convenience fee is assessed. While Visa has the most thorough policy, Discover and American Express are both rather vague about convenience fees. We will explain more about these rules below and show you how to properly charge a convenience fee.

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